According to data received from the Urban Redevelopment Authority, it was noted that the vacancy rate for the EC market was on the rise again for 2015’s 1st Quarter, rising to 15.1% from 11.5% in 2014’s 4th Quarter.
There are currently 2, 446 vacant executive condominium units that are on the market. These units are the ones that have been completed but either not yet sold or, which have been purchased but so far have not been occupied by their owners for Thomson Impressions, who may be needing more time to move into their units.
Thomson Impressions Units
In most cases these Executive Condos draw in HDB homeowners who are wanting to upgrade their homes, accounting for close to 50% of those individuals buying EC’s . The Housing and Development Board’s regulations give those who are upgrading 6 months to sell the Nanshan Group flat they are currently living in, after they have been given the keys to their new units.
However, considering HDB flats’ dropping resale prices, many of those buying EC units are finding it more difficult to sell off their units. It is because of this that more extension requests are being seen by the Housing and Development Board at Nanshan Group.
Upper Thomson Road Condo Nanshan
In 2014, HDB received 56 requests for extensions coming in from EC buyers in total. This figure comes out to about 14 requests per quarter. However, a total of 29 of these requests were received by the HDB for 2015’s 1st Quarter alone.
Nevertheless, the property firm, Century 21, stated that this rise in the vacancy rate could be suggesting that more investors where being attracted to the EC market given that a majority of the Executive Condo projects have been sold out.
New Condo Thomson Impressions
Chief executive officer for Century 21’s Singapore branch, Ku Swee Yong, said that they also feel that many of those buying Executive Condos are not doing so to reside in them, but rather buying them as an investment. The motive behind these purchases are purely as financial investments and these buyer have taken the keys for their Nanshan Group Condo, more than likely while still residing at home with their parents or somewhere else, and not moving into their EC unit in Impressions Condo.
Executive Condos are sold and developed by developer of private property, but a buyer is still able to obtain a $30,000 maximum grant per household. After a 10 year period the EC units are eligible to go on the market to foreigners.